2012 Tax Season deadline is extended to April 17th. The IRS will begin accepting e-file returns on January 17th. If you request an extension, your 2011 individual tax return will be due October 15th.
Capital Gains and Losses
New information is required to be reported on Form 1040, Schedule D, Capital Gains and Losses, and file a new form, Form 8949, Sales and Other Dispositions of Capital Assets, to report gains and losses of certain capital assets. The information on Form 8949 will correspond to new information being reported on 2011 Form 1099-B, Proceeds from Broker and Barter Exchange Transactions.
Brokers are required to report to the IRS, and their customers, the adjusted basis in securities sold and to classify the gain as long term or short term. This basis reporting applies to covered securities acquired in 2011 and later;
Individuals will be required to report both short-term and long-term gains and losses of capital assets in the following three situations:
- When basis was reported in box 3 of Form 1099-B;
- When basis was not reported on Form 1099-B; or
- When no Form 1099-B was received.
The IRS has created a page about Form 8949, and Schedule D (www.irs.gov/form8949). Any tax law changes, or new developments affecting them, will be posted there.
2012 Cost of Living Adjustments
Along with new tax tables being in effect, and the standard deduction increasing, Social Security wage base in now $110,100;
401(k) elective deferral increased to $17,000, from $16,000, the catch-up remains unchanged at $5,500;
SIMPLE account deferrals remain unchanged at $11,500;
Traditional IRA deduction phases out at $58,000-$68,000 for singles and Head of Household, and $92,000-$112,000 for married couples;
The phase out range for Roth IRA’s is $110,000-$125,000 for singles and Head of Household, and $173,000-$183,000 for married couples.
Depreciation
The 100% bonus depreciation expired December 31, 2011, but the 50% bonus depreciation is available for property placed in service in 2012.
2012 Mileage rate changes
Business use mileage rate remains at $0.555. Medical decrease to $.023